BLMN - Restaurant sales impress under the hood of noisy retail sales report

A noisy April retail sales report that lapped the lockdown-heavy month from a year ago did indicate strength for the restaurant sector. The food services & drinking places category showed a 116.8% Y/Y gain from a year ago, but more importantly displayed a 3.0% sales gain from March to stand out as one of the stronger categories for the month. The strong industry read follows on a report from earlier this week that restaurant sales last week were 12% higher than the level seen in 2019. Restaurant stocks have already been bid up this year on recovery expectations, with Dine Brands (DIN), Chuy's Holdings (CHUY), Jack in the Box (JACK), Potbelly (PBPB) and Red Robin Gourmet Burgers (RRGB) all up at least 20% YTD. Restaurant stocks trading with forward price-earnings ratios below 20X include Bloomin' Brands (BLMN), Brinker International (EAT), Cheesecake Factory (CAKE) and Del Taco (TACO). Sector watch: The increase

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Restaurant sales impress under the hood of noisy retail sales report